Real Estate Sales: Online Resources and E-commerce Text Size:

Like most other markets, the real estate market has been greatly affected by the Internet and online services. Many real estate brokerage companies have their own Web sites, and they post their real estate listings there. Some brokerage companies have "virtual" office Web sites where their clients can access listings from a multiple listing service (MLS). Other online resources are also available.

Company Web Sites

Real estate brokers and agents routinely display their property listings on their publicly accessible Web sites. Anyone can view these listings online. Real estate brokers are prohibited, however, under most real estate license laws and trade association codes of ethics, from advertising property listed with another broker without the express permission of the other broker, or of the seller.

The National Association of Realtors® is the largest trade association for realtors. The association's policy states that, unless a broker has expressly withheld such consent, a broker's submission of a listing to a multiple listing service (MLS) that is owned and operated by an association of Realtors® amounts to the broker's implied consent to allow other participants in the service to display the broker's listing on the other brokers' publicly accessible Web sites.

Multiple Listing Services

An increasing number of MLSs are using Internet-accessible database management software to deliver multiple listing services to their real estate broker participants. Brokers contact the MLS's address on the Internet and enter a user ID and password to gain access to the MLS database.

A listing broker who secures an exclusive listing agreement from a property owner has the exclusive right to determine how the property will be marketed, subject only to the property owner's consent. To this extent the listing broker controls how the data about the listing that is contained in the MLS's database compilation will be used by the MLS, or by other brokers who utilize the MLS, for the purpose of marketing the property to potential buyers. However, the MLS has the right to control access to the database for non-marketing purposes, such as for property valuations.

Virtual Office Web Sites

As Internet access has become more widespread, some real estate brokerage companies have introduced the concept of a ''virtual'' real estate office. The ''virtual'' office consists of a company Web site on which visitors to the Web site are invited to ''register'' as a client of the company. The ''client relationship'' is arguably formed when visitors indicate their acceptance of an online agreement in which the visitors appoint the company as the visitors' agent for the purpose of searching for property in a particular marketplace.

These ''virtual'' real estate companies often participate in regional multiple listing services (MLS). As members, the brokers and agents of ''virtual'' real estate companies can use the real estate data in the MLS's computerized database. These virtual offices, however, typically place the entire multiple listing service database of current listing information on the company's Web site and make access to the listing data available to their ''clients'' who have registered with them by clicking ''I agree'' on a representation agreement displayed on the Web site.

The practice of displaying all of the listings of a multiple listing service on a company Web site has been the subject of lawsuits. Currently, participating brokers are allowed to display MLS listings online. Listing brokers cannot choose to "opt out" its listings from display on other MLS participants' virtual office Web sites. However, sellers of property can direct their listing brokers to withhold their listing or property address from display on the Internet.

Other Services

Real estate brokers and buyers and sellers of property have other online resources, including:

• Sex offender registries. Under "Megan's Law" states must require persons convicted of crimes against minors or crimes of sexual violence to register a current address with state law enforcement officials. This list of names and addresses is called a registry. Some states provide the public with access to the state's registry via an Internet Web site. Local police department Web sites may also list registry information for a community.
• Appraisal services. Some companies offer appraisal services online. Interested consumers can search for "free real estate appraisals" online and find appraisal information there.
• Public records. Some states and counties have information about real estate on their Web sites. Interested consumers can access this information online. All they need is the Web site address-a county's or city's Web page can be a good place to start a search for online real estate records for a given locality.
• Easements. Interested consumers can find information about the existence of public utility rights of way or easements online. They can search for specific information by typing key words into a search engine.

A real estate attorney is a good resource for follow-up on questions you may have after gathering information about your real estate transaction online, or for guidance in using online services in your real estate transaction.

Questions for Your Attorney

• If I list my property with my broker, can another broker post information about my property on his company's Web site?
• What is a "virtual" office Web site? Does the real estate company or broker have to have a physical office somewhere?
• Can I prevent information about my property from being posted on the Internet? I'm concerned about the security and privacy of my home and family.

Related Resources on Lawyers.com^sm